Michigan Assisted Living Association: Legislature Must Act to Protect Accident Victims’ Access to Life-Saving Post-Acute Care
Legislation offers narrow fix to auto insurance law while preserving lower costs
BRIGHTON, Mich.—(May 5, 2021)— The Michigan Assisted Living Association, a statewide nonprofit serving more than 42,000 Michiganders in assisted living, as well as the providers of residential, vocational and other community-based services, today called on the Legislature to act immediately to fix legislation that is poised to have devastating consequences for victims of catastrophic auto accidents.
Senate Bill 314, introduced by Senator Curtis Hertel, Jr., of East Lansing, and House Bill 4486, introduced by Rep. Doug Wozniak, of Shelby Township, provide a technical fix for an unintended consequence of the 2019 auto insurance law: a fee schedule that slashes insurance reimbursements for complex post-acute and residential care nearly in half. The bills tweak the fee schedule without changing any other aspect of insurance reform whatsoever.
If the fee schedule goes forward without legislative action, the sweeping cuts will shutter small businesses that are serving some of the state’s most vulnerable residents—giving thousands of frontline workers a pink slip despite an uncertain pandemic economy—and causing patients and their families unnecessary chaos.
MALA sent letters to the Legislature pushing them to quickly pass SB 314 and HB 4486 before patients in residential and community-based care lose access to comprehensive, specialized treatment.
“We are convinced that the impact will be devastating to essential services provided by
quality programs without a fix to the 45% reduction in reimbursement rates,” the letter from MALA stated. “The bills will allow current and future citizens to receive successful rehabilitation and recovery. The Michigan Legislature has the power to right this wrong, while still maintaining the objectives set forth with the auto insurance reform of 2019. For this issue, waiting is not an option.”
The Michigan Brain Injury Provider Council, which represents health care professionals and facilities that care for people with severe brain injuries, recently conducted a statewide survey to measure the potential impact the non-Medicare fee schedule would have. The results were dire: a staggering 86% of post-acute care facilities have no or very little confidence that they can continue to operate their businesses. Meanwhile, there are roughly 6,000 patients expected to lose care if their providers are forced to close.
“We are not looking to overturn the new auto insurance law,” said MBIPC President Tom Judd. “We are only advocating for a narrow and technical fix that will protect access to care. If Gov. Whitmer, Speaker Wentworth and Majority Leader Shirkey truly care about auto accident survivors, they need to step up to the plate and take action now.”